Buying: And Selling Call Options
Stock XYZ is at $100. You buy a $105 Call for $2. If XYZ hits $110, your option is worth at least $5. You turned $2 into $5 (a 150% gain), while the stock only moved 10%. 3. Selling Call Options (Bearish/Neutral)
Most brokers require a brief application to "unlock" options trading levels. buying and selling call options
Options lose value every day they get closer to expiration. As a buyer, time is your enemy; as a seller, time is your friend. Stock XYZ is at $100